Face2Face is glad to get opportunity of one more talk with you, Mr Sagala! Textile industry has always been pivotal sector for economy of Indonesia. How is its performance nowadays?
The current performance of Indonesia Textile Industry, in brief, can be depicted as following:
The export has increased steadily, amounted to 18.5% on the average for the period of 1984 to 2000. However, affected by the global change, for the last 5 years it tends to slow down. In 2005 Indonesian export for textiles & garments reached USD 8.6 billion, and until 2009 showed USD 9.26 in exports, an increase of 2.09% annually. Though the figure may seem not so impressing, but one thing marking the achievement so far is the ability to keep the trade balance of textile & garment to be positive, i.e. the export surplus always hovering over than USD 5 billion.
Some factors can be mentioned to be responsible for the slowdown of export performance; the emerging of new competing countries such as Vietnam and Bangladesh, the downturn of global economy reaching the peak in 2009, all these pushed the export to decrease inasmuch as 8.70 % than that of in the previous year. In addition, the enactment of AC-FTA in 2010 will bring new challenge for our textile industry.
So, which strengths can help this industry to fetch the growth?
The current strengths of Indonesian textile industry including the following aspects:
1. Textile industry has long been developed, and currently encompassing from the initial up stream industry (man made fiber either polyester or viscose rayon) to the most downstream industry such as garment and other textile goods;
2. Though Indonesia lack cotton as main raw material for spinning, still the Indonesian spinners is noted world wide. With around 8 million spindles, Indonesia is able to export high counts-high quality yarns, whilst catering domestic need as well
3. Products quality is noted world wide.
4. As market, the populous country is providing huge market for textiles, and some measures are being taken to ensure that the whole potential market will be supplied firstly by local producers.
And, areas of improvements that your Ministry is currently working on?
In order to maintain and improve our current performance, presently, our Ministry is working on the following issues:
1. To alleviate problem in obsolete textile machinery, the Government is encouraging industry to take action in modernization and replacement of machines & equipments by providing government assistance through Textile Restructuring Program.
2. We are also consistently encouraging the industry to carry out energy conservation and other measures to ensure the industry consuming energy thriftily.
3. We are developing technology by enhancing co-operation with developed country such as Japan for instance, by adopting eco-friendly technology in dyeing process.
4. Development of human resources through higher education in textile technology.
5. Intensifying inter-linkage among the industry, from fiber to textile goods and other sectors of economy, by adopting cluster approach in developing textile industry.
Is handicrafts and cottage industry also included in the agenda?
Handicrafts and cottage industries are among other area of development for textile & textiles goods. We encourage the industry to develop local indigenous proprietary, local wisdom such as production system not in-house but spreading in small industry villages, adopting OVOP principle (one village one product), et cetera.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.